Suppose you purchase a new house for $200 000, making a down payment of 5% and taking out a mortgage on the balance. What is the return on your investment in your house if one year later the price of your house increased by 10%? (show your work). A) 100% B) 150% C) 200% D) 220%
Suppose you purchase a new house for $200 000, making a down payment of 5% and taking out a mortgage on the balance. What is the return on your investment in your house if one year later the price of your house increased by 10%? (show your work). A) 100% B) 150% C) 200% D) 220%
Chapter31: Capital Markets
Section: Chapter Questions
Problem 2E
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Suppose you purchase a new house for $200 000, making a down payment of 5% and taking
out a mortgage on the balance. What is the return on your investment in your house if one year
later the price of your house increased by 10%? (show your work).
A) 100%
B) 150%
C) 200%
D) 220%
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